How did Ducati become the second most profitable motorcycle maker in the world despite its small scale? What is the fundamental economic logic of Minoli’s turnaround.
The operational effectiveness was the key factor to gain the second most profitable motorcyclae maker.
a. Platform based approach to production caused more effecincy with economic of scale
b. Standardizing of products using two crank cases and three cylinder heads creates efficiency gains in manufacturing.
c. Play the strategy of outsourcing about 87% of production activities related to spare parts while maintaining core competencies activates like R&D, design, quality control, and key trade market component machining in house resulted in flexibility in new part productions
d. Establishing a quality control system focused on improving reliability and overall quality.
e. The fundamental economic logic of Minoli’s turnaround was as follow
f. Identified the capabilities and core competencies to start the turnaround.
g. Refresh and recapture Ducati brand and expand the customer base which used to be limited to the expert rider.
h. Improve the production process
i. Improve motorcycle design.